Here is a great article explaining where Canada's Central Bank stands regarding debt levels, interest rates and the general economy. This may help explain some of the new Mortgage rules that took affect earlier this year, which may be preventing some people from diving into the housing market.

Here is an excerpt:

“The bank wants to make absolutely clear that it is not contemplating rate cuts at this time,” Jimmy Jean, an economic strategist at Desjardins Capital Markets in Montreal, said in a note to clients. In April, policy makers first introduced language that reminded the public that rates would climb eventually, interpreted widely as a warning against taking on too much debt.